Grubhub cuts 23% of staff after Wonder deal, signals changes

GRUBHUB is cutting about 23 per cent of its workforce and set the stage for more changes at the company following its takeover by Wonder Group, the owner of Blue Apron.

“We’ve made the difficult decision to eliminate approximately 500 positions at Grubhub. These changes span all teams as we begin to integrate functions with Wonder,” Grubhub chief executive officer Howard Migdal said in a message to employees on Friday that was posted on the company’s website.

Grubhub had about 2,200 employees before the announcement, company spokesperson Katie Norris said. In light of the job cuts, Grubhub closed offices for the day. 

The cuts are aimed at “reducing management layers, bringing leaders closer to the business, and removing duplication,” Migdal said. The company is planning a town hall in March to talk more about “the path forward and our strategy for 2025,” he said. 

Wonder, owned by former Walmart executive Marc Lore, announced it was buying Grubhub from Just Eat Takeaway.com NV last November for about US$650 million, representing a 90 per cent discount to its pandemic peak.

Wonder operates first-party restaurants through its ghost-kitchen facilities, third-party food delivery under Relay and Blue Apron’s prepared meals and grocery service. 

On Monday, Dutch technology investor Prosus NV said it had in turn struck a deal to buy Just Eat for about US$4.3 billion.

Grubhub will remain a standalone brand and is “positioned well within Wonder,” Norris said. In 2024, the company achieved positive free cash flow and order volume has grown year-over-year in the first two months of 2025, she said.

The company has seen a “significant lift in order frequency” in its loyalty programme tie-up with Amazon Prime, Norris said. The brand has added 90,000 new merchants over the past 18 months, including more convenience and grocery options like Albertsons, CVS and Walgreens, she said. BLOOMBERG